Understanding the Gratuity Formula: Can Anyone Explain How It's Calculated?

Hi Dears,

Please provide me with details about the gratuity formula.

Thanks,
Muhammad Hanif Rana

I agree with the Submittable calculation, but I hope we can go up to a maximum of 3.5 lakh. Either the least amount could only be paid to the associate entitled under Gratuity. The other condition is the minimum period of enrollment for any associate would be not less than 5 years.

Regards,
G. Vinay Kumar
Certified Master Trainer (HR)

[LinkedIn Profile](http://in.linkedin.com/in/vinaygajula)

I agree with the Submittable calculation, but I hope we can go up to a maximum of 3.5 lakh. The least amount can only be paid to the associate entitled under Gratuity. The other condition is the minimum period of enrollment for any associate should be no less than 5 years.

With regards,

Regards

The limit of the Gratuity amount has been increased to Rs. 10,00,000.

Abbas P.S.

Employee Gratuity is calculated by the following formula: (Last Drawn Basic + D.A) x 15 / 26 x No. of years in service. Minimum service of 5 years and claim maximum up to 10 lakhs.

Regards,
Siddharth